China expands solar industry, despite economic losses

China’s growing solar industry has come at a price: Although its growth has lowered prices for acquiring the technology, China’s solar panel manufacturing capacity is 32 times bigger than its domestic consumption, and Chinese solar companies are losing money and shelving capital expenditure plans.

Nov. 10, 2011An employee inspects solar panels along a production line at an LDK Solar company workshop in Hefei, Anhui province, China. Generous state bank loans to Chinese solar companies — a bone of contention for their Western counterparts — are threatening the financial health of the firms as they grapple with falling product prices and tumbling demand from their biggest customer, Europe.Jianan Yu/Reuters